A Sydney diner has sparked a heated debate online over a popular restaurant’s 10 per cent surcharge.
The diner shared their frustration over the charge at NOLA Smokehouse and Bar in Barangaroo.
WATCH THE VIDEO ABOVE: Couple hit with bizarre surcharge fee at restaurant.
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“Was considering dining here until I saw this nonsense,” they posted to Reddit.
In the fine print on the restaurant’s menu, it explains a “discretionary 10 per cent gratuity charge will be added to the final bill”.
The Reddit user wasn’t the only one disappointed by the charge.
In a Google review for the restaurant, a diner said they enjoyed their meal but left one star after describing the surcharge as “rubbish”.
“It’s my option to tip or not if I’m happy with the service or not,” the diner said. “Don’t force it on me.”
The venue has responded to the diner, saying the tip is to “ensure all staff are fairly compensated for their work” and is a “standard practice in the hospitality industry”.
While diners are regularly asked to fork out more on public holidays and even weekends at some restaurants, a weekday surcharge is not applied in most cases.
Australia’s consumer watchdog said restaurants and cafes are free to set their own surcharges, but there is one rule: businesses cannot hide the surcharges on the menu.
“Restaurants, cafes and bistros that charge a surcharge on certain days do not need to provide a separate menu or price list or have a separate price column with the surcharge factored in,” the Australian Competition and Consumer Commission said.
“However, the menu must include the words ‘a surcharge of (percentage) applies on (the specified day or days)‘ and these words must be displayed at least as prominently as the most prominent price on the menu.”
According to the ACCC, businesses must also “display a total price that includes taxes, duties and all unavoidable or pre-selected extra fees”.
Some Reddit users fired back in the comments, asking: “Isn’t it the employer’s responsibility to ensure workers are fairly compensated?”
“I have no patience for companies trying to instigate this nonsense here. It’s not my job to pay your staff,” one person said.
“How do the staff know they’re getting their fair share of the 10 per cent?” another person questioned.
NOLA general manager Clement Martin told 7NEWS.com.au the fee is not mandatory, and customers may opt out at any time.
“This is a discretionary charge that was added during the COVID period and continued economic climate, in order to reward our hard-working staff who continue to provide a high-quality service to our guests,” he said.
“Of the gratuity charge, 1.5 per cent covers credit card fees, with the rest all passed on to staff. Customers can have it removed from their bill at any time.
“We will continue to clearly communicate the discretionary charge and opt-out to our guests, and we apologise for any confusion this has caused.”
7NEWS.com.au has reached out to the ACCC for further comment.
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